What Is Bitcoin?

Bitcoin is a decentralized, peer-to-peer digital currency and payment network. It enables a new form of online payment completely independent of any government or third-party intermediary. For users, bitcoin is essentially “cash for the Internet.” The decentralized nature of the network means that its individual users drive Bitcoin, with no need for brokers or a central authority.

The currency units, called ‘bitcoins’ or ‘BTC’, are exchanged between bitcoin addresses similarly to how emails are transferred between email addresses. As bitcoins are exchanged, the globally distributed ledger used to track bitcoin ownership, known as the ‘Blockchain', is collectively updated by ‘miners' on the network.

Where Can I Buy Bitcoin?

There are several means of acquiring bitcoins. Individuals can accept them as payment for goods or services, purchase them on a bitcoin exchange, or by becoming a bitcoin miner. If you are just starting out, the best way to acquire bitcoins is through an online exchange. These sites allow you to buy and sell bitcoins for other local currencies. There are many online exchanges, so be sure to do your research and find a secure site in good standing. Remember, when you send money to an online exchange, you are putting your trust in the operator.

What Is The Price Of Bitcoin?

Because bitcoin is a virtual currency, it holds no intrinsic worth. However, its adoption by individuals and vendors around the globe has given it a great deal of value. Individual bitcoins hold value because they are both useful as a form of currency and they are relatively scarce. The bitcoin exchange rate is determined entirely by supply and demand on the open market. As such, the price is subject to market fluctuations. If you’re interested in the most up-to-date exchange rate, go to www.preev.com or search “1 BTC” on Google.

How Can I Use Bitcoin To Play Poker?

Bitcoin is useful for online poker rooms for two reasons. First, bitcoin transactions are conducted external to traditional banking systems. Because of this, there is no regulation on the transactions. This decentralized process means that individuals are able to deposit to and withdraw from online poker rooms with relative ease. Second, bitcoin transfers happen almost instantly, so there’s no waiting for wire transfers or checks in the mail.

This anonymity and lack of a central authority means easier (and cheaper) transactions for players.

For online poker rooms, bitcoins are usually broken down into much smaller pieces, or chips. This makes it easier to make smaller, more incremental, bets and conduct your game however you wish.

Is Bitcoin Legal?

No jurisdiction has passed legislation to make bitcoin illegal. While there are some limitations or restrictions depending on the jurisdiction, the status of bitcoin as a non-recognized form of currency helps to maintain its independence. Instead of making it illegal, some jurisdictions have actually taken steps to integrate digital currencies into the formal financial system.

Here’s the Wikipedia article for the legal standing of bitcoin around the world:

Is Bitcoin Anonymous?

Bitcoin is pseudonymous and can be made loosely anonymous with the right precautions. All bitcoin transactions are recorded on the Blockchain as a means of ensuring transparency and security for the network as a whole. However, linking bitcoin addresses to real-world identities isn’t easy. That said, if you purchase bitcoins through an avenue that requires identifying information, it’s safe to assume you’re identity can be linked to transactions.

Is Bitcoin Safe?

So far, yes. Bitcoin is entirely open-source and open for review and audit.This essentially means that anyone in the world can read the Bitcoin source code and determine how the network functions.Bitcoin is expressly designed to allow users make transactions with a satisfactory level of privacy, just like any other form of currency. However, because of the peer-to-peer, open network of the bitcoin system, the currency is not completely anonymous. bitcoin transactions leave public records as a means of ensuring transparency and security for the network as a whole. For this reason, bitcoin cannot be as anonymous as cash.

Hasn't Bitcoin Been Hacked In The Past?

The basic cryptographic principles behind Bitcoin are well established industry standards. However, early errors in the Bitcoin network have been found and subsequently fixed since its inception. There has been some misunderstanding about past thefts or compromises within the Bitcoin ecosystem. None of these unfortunate events has involved the core Bitcoin protocol itself. Just as a bank being robbed doesn’t undermine the integrity of the US Dollar, a bitcoin exchange getting hacked doesn’t undermine the integrity of Bitcoin.

Who Actually Uses Bitcoin?

While bitcoin was originally created to benefit an online black market of sorts, a growing number of both individuals and businesses are beginning to use bitcoin. Individuals can now use bitcoins at a great many businesses, including both ‘brick and mortar’ businesses (such as restaurants and law firms) and well-trafficked online services like Reddit and WordPress. This is reflected in the circulation of bitcoins; as of January 2015, there are nearly 14 million bitcoins in circulation (that is, over 3 billion dollars worth). A growing number of individuals and businesses are using bitcoin. Individuals can use bitcoins at many brick and mortar businesses such as restaurants, grocery stores, law firms, etc., and many online retailers like Microsoft, Dell, Newegg, Dish, Expedia, among others.

What Are the Advantages / Disadvantages Of Bitcoin?

There are a few potential disadvantages of bitcoin as a whole. The first is that few people are aware of the existence or use of bitcoin. While this number is growing, Bitcoin needs to benefit from a network effect to reach its potential. A second potential disadvantage is that the total value of circulated Bitcoins is still relatively small, and small events or activities can affect the volatile price. However, as Bitcoin continues to grow, this volatility diminishes. The third potential disadvantage (although it is not fully disadvantageous) is that bitcoin is still essentially in it’s “beta” stage, meaning that new services, tools, and relevant features are being created to ultimately make bitcoin better, accessible, and more secure.The advantages of using bitcoin arguably outweigh the potential disadvantages.